The stock of the online marketplace Etsy fell more than 15% on Thursday and was the worst performer on the S&P 500. Its latest earnings report showed a drop in gross merchandise sales and a weak guidance report.

For the March-ending quarter, the company earned 48 cents per share on sales of $646 million, which is in line with expectations. It posted revenue of $646 million for the March quarter, up 0.8% from the prior year. The company’s expected revenue was $645 million. Gross merchandise sales were $2.99 billion, a drop of 3.7%, whereas analysts expected them to be $3.03 billion.

“Our first quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth,” CEO Josh Silverman said in a statement.

In the second quarter, Etsy expects to report a similar drop in gross merchandise sales, which would suggest the figure will be $2.9 billion, below Wall Street’s expectation of $3.07 billion.

Currently, Etsy’s marketplace connects 9 million independent sellers with 91.6 million buyers, an increase of 1.6% year over year. In terms of delivery service, the company is facing great challenges from large e-commerce companies like Amazon. Furthermore, fast-fashion brands like Temu and Shein have become increasingly challenging, causing Etsy to lay off workers last year to remain competitive.